Paterson proposes to cap the annual growth of local school and government taxes, which are among the highest in the nation. The Senate has already passed the bill. It has been blocked in the Democrat-controlled Assembly.

Paterson's move will put pressure on upstate and Long Island Democrats running for re-election because high property taxes are a major campaign issue. It is less of an issue in New York City, the core of the Assembly's Democratic majority.

Paterson spokesman Morgan Hook says Monday that the governor will meet with legislative leaders this week to set a date for the extraordinary session, rare in an election season.